A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Fresh Del Monte Produce (FDP)
Rolling One-Year Beta: 0.06
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Do We Think FDP Will Underperform?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Gross margin of 8.2% is an output of its commoditized products
- ROIC of 5.3% reflects management’s challenges in identifying attractive investment opportunities
Fresh Del Monte Produce is trading at $32.76 per share, or 8.1x forward EV-to-EBITDA. If you’re considering FDP for your portfolio, see our FREE research report to learn more.
Owens & Minor (OMI)
Rolling One-Year Beta: -0.03
With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE: OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients.
Why Does OMI Fall Short?
- Annual sales growth of 3.2% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $7.93 per share, Owens & Minor trades at 4.4x forward P/E. To fully understand why you should be careful with OMI, check out our full research report (it’s free).
One Stock to Buy:
Ibotta (IBTA)
Rolling One-Year Beta: 0.85
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Will IBTA Outperform?
- Rapid growth in total redemptions demonstrates strong market adoption
- Estimated revenue growth of 7.5% for the next 12 months implies its momentum over the last two years will continue
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 53.4% annually, topping its revenue gains
Ibotta’s stock price of $46.78 implies a valuation ratio of 14.7x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
